Piramal buys TPG's 10% stake in Shriram Transport for Rs 1652 cr

Shares of Shriram Transport Finance Company rallied over 5 percent in morning trade today after Piramal Group picked up US-based private equity investor TPG’s 9.9 percent stake in the company through block deals in the open market.

The 10 percent stake buy is in line with Piramal’s strategy to focus on financial services.

[caption id=“attachment_769983” align=“alignleft” width=“380”] Block deal[/caption]

Piramal Group bought 2.26 crore shares of Shriram Transport Finance Company at a price of Rs 725 per share in a block deal.

In an interview with CNBC-TV18, Ajay Piramal, chairman of Piramal Enterprise said the group bought stake in Shriram Transport for Rs 1,652 crore through a secondary market deal. “We see long-term shareholder Value creation via this stake buy,” he added.

UBS was the sole broker to the Shriram Transport Finance Company deal.

The Ajay Piramal Group company had earlier announced its foray in the financial services business and this investment is in line with its long-term strategy.